Harris County Appraisal District

Guide to Personal Property Rendition

If you own a business, you are required by law to report personal property that is used in that business to your county appraisal
district. There are substantial penalties for failure to report or for falsification and tax evasion. The Harris County Appraisal District
has prepared this document to assist you in complying with this very important law.

What is a rendition?
A rendition is a form that provides information about
property that you own. The appraisal district uses the
information you provide to appraise your property for
taxation.
Who has to render?
There are three categories of taxpayers who must render:
Owners of tangible personal property that is used for
the production of income (see below)
Owners of property on which an exemption has been
cancelled or denied
Owners who have been formally notified by the chief
appraiser that they must render.
What kinds of property must be rendered?
For taxation purposes, your property is classified as
either real property (land, buildings, and other items
attached to land) or personal property (items that can be
owned but are not attached to land). Personal property
that you use to produce income or for business
purposes must be rendered unless the total value of
all of the personal property is less than $500. This
includes furniture and fixtures, equipment, machinery,
computers, inventory held for sale or rental, raw
materials, finished goods, and work in process. You are
not required to render intangible personal property
items that can be owned but do not have a physical form
such as cash, accounts receivable, goodwill, custom
computer software, and other similar items. If your
organization qualifies for an exemption that applies to
personal property for example, a religious or charitable
organization exemption, you are not required to render
the exempt property.
You may qualify for an exemption from ad valorem
taxation for one passenger car or light truck that is
owned by an individual and used by that individual for
both professional and personal activities. Vehicles that
are individually owned and used for the transportation of
passengers for hire are NOT eligible for this exemption.
To request this exemption, your application must be
filed with the appraisal district on, or before, April 30. If
you mail the form, it must be postmarked no later than
midnight April 30. The individual who has been granted
or has applied for this exemption is not required to
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render the vehicle for the year in which the exemption

has been applied for or granted. The application form is
available at www.hcad.org/Forms/
Which forms will I need to file?
For Harris County Appraisal District, most businesses
will need to file the general rendition form, 22.15. If you
own business vehicles, you will also need form 22.15VEH. There are additional special forms if your business
owns aircraft, pipe stock, or vessels. In addition, we
have specific forms for cable company and industrial
plant assets. Call our Information Center at (713) 9577800 if you have questions about these special forms.
When must the rendition be filed?
Normally, the last day to timely file your rendition is
April 15. If you mail the rendition or send it by a
contract carrier such as UPS or FedEx, it must be
postmarked or bear a receipt mark on or before April 15.
If you hand deliver it, HCAD must physically receive in
our office before the close of business on April 15.
When your property needs to be rendered because the
chief appraiser has denied or cancelled an exemption,
you must render it within 30 days of the date the chief
appraiser denies or cancels the exemption.
Where must the rendition be filed?
Renditions for property located in Harris County
Appraisal District must be filed with HCAD. The
mailing address for the general rendition forms is Harris
County Appraisal District, Business and Industrial
Property Division, P.O. Box 922007, Houston, Tx.
77292-2007. The street address of HCADs offices is
13013 Northwest Fwy., Houston, Tx. 77040.
If my business personal property assets are exactly
the same as reported in my prior year rendition, do I
still need to render?
Yes. If your personal property assets on January 1, were
exactly the same as those assets contained in your most
recent rendition statement you have filed with the
appraisal district, then all you need to do is check the
affirmation box in Part 3 on page 1 on your rendition
form. After checking the affirmation box in Part 3,
complete the Signature and Affirmation box at the
bottom of the page.

Can I file on-line or electronically?

It is possible to file some types of renditions
electronically using HCADs iFile System. Online
rendition filing is available only if a unique iFile number
is printed on your rendition form under the account
number. You can render online at www.hcad.org/ifile.
Complete instructions are available on the iFile system.
If no iFile number is printed on your rendition form,
you will need to complete and file the form manually.
The ability to file your rendition online does not change
the April 15th deadline for filing renditions.
If you have a large, multi-jurisdictional account and need
information on the file layout description for filing your
rendition electronically, you may email
leasing@hcad.org.
What will the appraisal district do with my
rendition?
Your rendition will be analyzed and used, along with
other information we collect on similar businesses, to
develop an estimate of value for your property.
Is my information confidential?
Yes. Information contained in a rendition cannot be
disclosed to third parties except in very limited
circumstances. In addition, the Tax Code specifically
provides that any estimate of value you provide is not
admissible in proceedings other than a protest to the
ARB or court proceedings related to penalties for failure
to render. The final value we place on your property is
public information, but your rendition is not.
What do I have to file if my personal property is
valued at less than $20,000?
Unless your total business personal property assets are
valued at less than $500, you will have to file at least the
general rendition form. However, you will only be
required to fill out a short table generally describing
your assets and giving their location.
What information is required for the rendition?
Depending on the type of property you own and its
value, you can expect to provide the following
information:
Location
You will need to give the address where the property was
located on January 1. If the property was in transit on
January 1, or is regularly used in more than one location,
you should provide additional information about the
propertys normal location and circumstances on January
1.
General description
A general description should give enough information to

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identify the property and distinguish it from other items

that you own. At minimum, you should identify the
major categories of personal property assets that you
own, using the same terminology you would use in
reporting to the internal revenue service. You have the
option of providing an itemized listing of the various
assets in any category. For vehicles, you will need to
provide the plate and VIN number, as well as the year,
make, and model.
Quantity of items
If you own an inventory of items that you hold for sale
or rental, you will need to provide an estimate of the
quantity of each type of item that you hold in inventory.
Again, you can provide an itemized list if you prefer for
any category.
Good faith estimate of market value
The appraisal district will estimate the market value of
your items on the basis of your rendition and other
information in its possession. Under the rendition law,
you must include in your rendition either a good faith
estimate of the market value of your items or the
historical cost and acquisition date (discussed below) of
the items, if the value of your items are $20,000 or more.
If you choose to give a market value estimate, you
should be aware that there are several different
definitions of market value that may apply. For items
other than inventory, market value is defined as follows:
"Market value" means the price at which a property
would transfer for cash or its equivalent under
prevailing market conditions if:
(A) exposed for sale in the open market with a
reasonable time for the seller to find a
purchaser;
(B) both the seller and the purchaser know of all
the uses and purposes to which the property is
adapted and for which it is capable of being
used and of the enforceable restrictions on its
use; and
(C) both the seller and purchaser seek to maximize
their gains and neither is in a position to take
advantage of the exigencies of the other.
(Sec. 1.04, Texas Tax Code)
For inventory, market value is defined by the Tax Code as
the price for which it would sell as a unit to a purchaser
who would continue the business. Sec. 23.12, Texas Tax
Code. If your business has 50 or fewer employees, you
may base your estimate of value on federal income tax
depreciation schedules. You will need to be prepared to
defend your estimate and explain how it was developed.
Original cost
Instead of providing a good faith estimate of market
value, you may provide the original cost and date you

acquired the property. Original cost (the Tax Code uses

the term historical cost when new) refers to the
amount you paid to acquire the property. Your cost
would include transportation and any other necessary
expenses incurred in acquiring the property. If you
purchased a used item, you should note on the form that
you purchased it used and give the amount you paid.
Date of acquisition
Date of acquisition is simply the date you bought or
acquired ownership of the property.
How should I estimate market value?
Publications that provide value information on assets are
helpful tools in estimating market value. For example,
there are numerous publications on vehicles and
computer equipment that provides a range of value
information for these assets. If you choose to use
published value information, you must use a value that
would reflect the assets worth near January 1st. You can
use HCADs published Business Personal Property
Value Calculation Guidelines, which is posted on our
web site at www.hcad.org. Developing an estimated
useful life and replacement cost of an asset is another
method of estimating market value. Divide the actual age
of the asset by the estimated useful life in order to
calculate the depreciation for the asset. Multiply the
depreciation percentage by the replacement cost to
estimate an amount of depreciation. Subtract the amount
of depreciation from the replacement cost to arrive at an
estimate of market value. If your business has 50
employees or less, subsection 22.07(c) allows you to
base your good faith estimate of market value on
depreciation schedules used for federal income tax
purposes.
How should I determine original cost?
To determine original cost, you need to refer to your
accounting records, such as original journal entries and
account ledgers. Use original purchase documents, such
as invoices or purchase orders to determine the original
cost of the asset. You need to add all cost that is
attributed to getting the asset functioning, such as freight
and set-up cost.
Should I include fully depreciated or expensed assets
on my rendition?
Yes. The rendition should include assets that have been
fully depreciated on your books and assets which were
expensed rather than capitalized for income tax
purposes, so that all tangible personal property used for
the production of income is reported.

What are the penalties for failure to comply?

There are two levels of penalties for failure to comply. If

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you fail to file your rendition or explanatory statement

before the deadline or you do not file it at all, the penalty
is equal to 10% of the amount of taxes ultimately
imposed on the property. If a court determines that you
have committed fraud or done other acts with the intent
of evading taxes on the property, a penalty equal to 50%
of the taxes ultimately imposed on the property will be
levied. The penalty will be a separate line item on your
tax bill. Fraud could also result in criminal prosecution.
If I cant file on time, what should I do?
If you need more time to complete your rendition, you
have the right to an automatic extension to May 15, and
a further 15-day extension if you show good cause. The
iFile system is available to request extensions for all
types of personal property accounts, and the unique iFile
number is printed on the extension request form in your
rendition packet. If you prefer, you can complete and
mail the extension form. The May 15 extension form
must be mailed or delivered no later than April 15. If
you need the additional extension for good cause, that
form must be mailed or delivered no later than May 15.
How do I find out whether the appraisal district
received my rendition on time?
Call our Information Center at (713) 957-7800. If the
center is provided with your account number or the
name of your business, they can enter it into our system
and inform you of the date your rendition was received.
What are my rights if a penalty is assessed against
me?
If a penalty is assessed against you, you can file a
request for a waiver of the penalty. You must file the
request in writing with the chief appraiser within 30 days
after you receive the notice that the penalty has been
imposed. Your request must include documentation
showing either that you substantially complied with the
rendition law or that you made a good faith effort to do
so. The documentation should also address:
(1) your compliance history with respect to paying taxes
and filing statements or reports;
(2) the type, nature, and taxability of the specific
property involved;
(3) the type, nature, size, and sophistication of the
persons business or other entity for which property is
rendered;
(4) the completeness of your records;
(5) your reliance on advice provided by the appraisal
district that may have contributed to your failure to
comply and the imposition of the penalty;
(6) any change in appraisal district policy during the
current or preceding tax year that may affect how
property is rendered; and
(7) any other factors that may have caused you to fail to
timely file a statement or report.

The chief appraiser is required by law to consider these

factors and notify you in writing. If the chief appraiser
declines to waive a penalty and you have made a timely
request for waiver, you may protest the imposition of the
penalty to the appraisal review board. The board may
waive the penalty if it finds that you substantially
complied with the rendition law or made a good faith
effort to do so.
When can the chief appraiser request an explanatory
statement from me?
If you provide a good faith estimate of market value
instead of original cost and acquisition date for any
items, the chief appraiser may request an explanatory
statement from you. The chief appraiser must make the
request in writing, and you must provide the statement
within 21 days of the date you receive the chief
appraisers request.
What must I include in an explanatory statement?
The explanatory statement must set out a detailed
explanation of the basis for the estimate(s) of market
value given in your rendition. The statement must
include adequate information to identify the property. It
must describe the physical and economic characteristics
of the property that are relevant to its market value. It
must give the source(s) of information used in valuing
the property, and explain the basis for the value estimate.
What happens if I dont file my statement on time?
If you dont file your statement on time, a penalty equal
to 10% of the amount of taxes on the property will be
imposed. There is also a 50% penalty if a court finds you
engaged in fraud or other actions with intent to evade
taxes. You have the same waiver and appeal rights
discussed above.
What if the appraisal district values my property at a
higher amount than what I render?
You may file a protest with the appraisal review board.
Can I report all my properties on one rendition?
If the appraisal district has already set up accounts
covering your property, you should file a rendition
corresponding to each account. If the district does not
have accounts set up for your property, it is generally
best to file a rendition applicable to each location where
your property is kept. For example, if you own three
separate convenience stores, file three renditions, one for
each store.
Can I request an extension to file the rendition?
Yes. See what to do if you cant file on time, above.
Can I fax my rendition?
No. In order to be considered timely filed, your rendition

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must either be physically delivered to the district prior to

the deadline or mailed to the district and postmarked on
or before the deadline.
Can I E-mail my rendition?
See the discussion of electronic filing above.
If I can't file by the extension deadline, what should I
do?
You should file your rendition as soon as you can, and
include with it a request for waiver of penalty and
explanation of your reasons for missing the deadline as
described above. If you receive a notice from the chief
appraiser regarding the imposition of a penalty, be sure
to file the request for waiver within 30 days of the date
you receive it.
For more information, contact the Harris County
Appraisal District at (713) 957-7800. The districts
website is www.hcad.org.